Suchergebnisse

Geographic clustering of innovative industries is associated with the entry and success of spinoff firms. We develop a model to explain the multiple empirical patterns regarding cluster growth and spinoff formation and performance, without relying on agglomeration externalities. Clustering naturally follows from spinoffs locating near their parents. In our model, firms grow and spinoffs form through the discovery of new submarkets based on innovation. Rapid and successful innovation creates more opportunities for spinoff entry and drives a region's growth. Our model provides baseline estimates of levels of agglomeration that can be attributed to this process of innovation and spinoff formation.

This paper synthesizes and extends recent criticisms of cross‐sectional and panel studies of perceptual deterrence and then uses those criticisms to design a better cross‐sectional study. A series of scenarios involving the noncompliance of a hypothetical plumber were posed to a sample of predominantly middle‐aged administrators. The respondents were asked to estimate the probability that the noncompliance would be detected and, if detected, the probability that it would result in criminal prosecution. Respondents were also asked to project their own behavior if in the plumber's position. The results contrast sharply with prior findings, especially of the panel studies. Not only do perceptions of detection risk play an important role in deterring tax noncompliance, but fear of criminal prosecution appears to be a powerful deterrent.

The influence of tax preparers on tax compliance is assessed, using 1982 data from the Internal Revenue Service's (IRS) Taxpayer Compliance Measurement Program & an index of legal ambiguity based on revenue rulings, focusing on the impact of preparation mode (paid third party vs self) on compliance at the level of the return line item. Results suggest that preparers contribute to compliance by enforcing legally clear requirements but also contribute to noncompliance, as measured by the IRS, by helping taxpayers take advantage of legal ambiguity. Furthermore, an analysis of a campaign to enforce estimated tax requirements conducted by the Pennsylvania Dept of Revenue suggests that tax preparers are also an important network for communicating tax agency enforcement priorities to taxpayers. 7 Tables. HA

United States; based on conference paper. Analysis of data compiled by the IRS and the Pennsylvania Department of Revenue.